RBA Rate Hike Outlook: Impact on AUD/USD and ASX 200 
RBA Raises Interest Rates to 4.35% Amid Rising Inflation Risks and Middle East Tensions 
Japan Inflation Expectations Rise as BOJ Rate Hike Timing Faces Uncertainty 
OECD Sees Bank of Japan Raising Interest Rates to 2% by 2027 
ECB Rate Outlook: Ceasefire Eases Pressure but Hikes Still Expected in 2026 
Bank of Japan's Ueda Flags Low Real Interest Rates as Key Factor in Rate Hike Timing 
DOJ Ends Probe Into Fed Chair Jerome Powell, Boosting Kevin Warsh Confirmation Prospects 
The Fed is in a comfortable position to weaken its currency much more effectively as compared to the ECB. Even though the central bank is widely expected to raise interest rates, the fear among the markets that the Fed might not deliver an interest rate hike caused the dollar to depreciate recently. This leaves the Fed ample room to weaken its currency if it wanted to do so.
If the Fed decides to let go of its rate hike cycle and instead embarks on monetary policy easing, a notable correction of the USD exchange rates will be seen. This explains USD's sensitive reaction to poor U.S. data.
Markets now await Fed chair Janet Yellen testimony on Wednesday for further cues on the USD moves.
